FX levels to watch – EUR/USD, GBP/USD and AUD/USD

The dollar is coming under further pressure, with bullish breaks for the likes of GBP/USD and AUD/USD pointing towards further upside to come.

EUR/USD resurgence likely to persist

EUR/USD is on the rise once again this morning, following on from a 50% retracement over Wednesday and Thursday.

There is a strong chance we will see further upside come into play given that we are moving upwards from the lower bound of the recent range, pointing towards a return to the $1.2450 region before long. Be aware that this retracement could be deeper, yet any further downside in the near term would be perceived as a buying opportunity, unless we break below $1.2214.

GBP/USD breaks out of triangle formation

GBP/USD has managed to break through both trendline and horizontal resistance, with the price hitting a two-month high this morning.

This provides a bullish continuation picture, with further upside likely over the coming weeks. Given the extended nature of this recent rally, there is a chance of a retracement, which would come if the price breaks below $1.4145. Until then, the short-term picture also looks bullish.

AUD/USD rallies out of falling wedge pattern

AUD/USD is on the rise, with the price also rallying through trendline and horizontal resistance. That push above $0.7785 signals a likely follow through of recent gains, with the wider 76.4% retracement pointing towards a bullish reversal of the losses seen throughout February and March.

The next big hurdle to overcome is the question over whether we are simply retracing some of the sell-off from $0.7916, with 61.8% ($0.7812) and 76.4% ($0.7852) being the key levels to watch for potential sellers to come in. Should we break through those levels, it would go a long way to pointing towards a rally into $0.8136.

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